New investigation of RVC will help properly invest in media communication

By order of RVC there has been conducted the investigation, the result of which became analytical review “Media communications: New world. New rules”. Created product included detailed statistics of the communications branch, forecast of its development, road maps of the branch, and also closed data for deals on the market of seed and venture financing in Russia and the world with analysis of their business models. This is the first on Russian market investigation in the branch of media communications; it has been conducted by experts of National Research University “Higher School of Economics” within the limits of the project “Venture Kitchen”.

The media communications branch nowadays is one of the most perspective for making investments due to conducted in it technological boom. Attractiveness of the branch for investors explains by minimum investments, required for enter and the most high augmentation of generated profit.

Analytical review is based on the inquiry of venture investors, conducted by the Company Deloitte, and investigation of PwC on entertainment industry and mass media.

The investigation reveals the most effective business models. It includes advertising services (clients’ payments), audio (music selling, subscription), video (purchase or rent of films, subscription). Also to productive business models refer online games (paid, free, creation of game currency, transforming of the game hero into the customer brand), social networks, mass media, etc.

According to investigation’s data, in this market segment have been made the most high- margin transactions. The brightest example of successful Russian Startup in the sphere of media and communications is the service VKontakte: in 2013 the Investment Fund United Capital Partners (UCP) ended the deal by purchase of 48% of network for $720K.

In the review the sphere of media communications includes such segments, as production of content, technological solutions by its storage, transfer, promotion and monetization. Herewith in the context of investments, the most attractive segments are branches for production and promotion of content, because it requires minimum capital investments in creation and development of projects.

Mobile content demonstrates the highest growth rates: 57% (since 2009 till 2011). Video content has 21%, and online games comprise 19%.

Authors of the investigation note, that the content promotion segment has significant changes. Traditional media (TV, press) gradually give leading positions to context and mobile advertisement. Experts forecast great perspectives for the RTB technology (real-time binding – auction of advertising announcements in real time): RTB in 2013 can take about 5% of the display advertisement market, and by 2015 – more than 20%.

One more peculiarity of the media communication market is convergence of Internet and mobile sphere, which lead to new markets appearance, and, correspondingly, redistribution of the main advertising budgets.

It is possible to view the whole text of the review at the site of RVC in section “Analytics and investigations”: http://www.rusventure.ru/ru/programm/analytics/